Business tax to improve Stourbridge and Halesowen

Dudley Council is drawing up proposals for Business Improvement Districts (BID) in both areas.

The scheme will see firms join forces to create a single company and each member pays a levy. Members will then get to decide how the money is spent.

The cash could be used to fund special events, more security or promote the towns and make them more attractive to visitors.

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Chairman of Halesowen Chamber of Trade Wayne Edwards today welcomed the plan.

"Essentially the process is that the Chamber bids for this and has to get a majority of business to agree before it is taken forward," he said.

"If we do get the agreement of a majority of businesses, that means we will have funds coming in from each business to spend in the town however we like.

"I think it is a fantastic idea as it means we will be able to revamp and market the town to get footfall and shoppers in which will be good for every trader.

"What is good is that each business will pay the same percentage of their business rates so bigger corporations, such as supermarkets, who currently pay a minuscule amount to the town, will have to contribute more money than smaller independent stores.

"It will also allow us to put on more big events so overall I think it will be fantastic for Halesowen."

Dudley Council would support the BID companies, which would also aim to encourage new names into the towns.

It is estimated that a BID company in Halesowen could generate £51,668 with a one per cent levy and £103,337 if it is set at two per cent.

In Stourbridge, it is estimated that a one per cent levy would bring in £91,000 and a two per cent one £182,000.

All the money generated would be ring-fenced to be spent on specific projects agreed by the businesses in the BID for the benefit of trade in their area.

Councillor Judy Foster, cabinet member for regeneration, said: "BIDs are often successful in attracting other funding in addition to the levy. In other cities they are bringing businesses together to take control of promoting their districts and the attractions they have to offer visitors."

If approved, Dudley Council will start to work with businesses in Stourbridge and Halesowen on the feasibility of establishing BIDs, their priorities and business plans.